Mobile communications in Russia is an economic success story. Four competing operators have built state-of-the-art networks, relying on foreign technology and capital. However, as the sector prepares for the transition to 5G, it is facing strong headwinds: The security apparatus is unwilling to relinquish the most promising radio spectrum, 3.4-3.8 GHz, for 5G licenses. At the same time, Russia’s telecoms regulator is urging operators to build a single, shared 5G network with state participation, an idea that the privately-owned carriers strictly oppose. Additionally, import substitution lobbyists are working hard to make 5G infrastructure “Made in Russia” mandatory.
